Market news & insights

Gold has been one of the most popular and highly traded markets recently as price action in the precious metal has really come alive, rate hikes, the war in Ukraine and Bank Crises have all played a part in the fundamental reasons for gold price movements in the last 12 months. Let’s take a look at the chart to see these fundamental effects and how the technical are shaping up. Firstly, the macro picture of what fundamentals have done to the price of Gold are where it’s turning points have been.

The chart below shows the decline in the Gold Price during most of 2022 as the USD rallied strongly on the back of an aggressive Federal Reserve hiking cycle, this put downward pressure on gold where we can see it bottomed and found support around the 1617 level. Next was the talk of a Fed pivot, the market starting to price in the end of the Fed hiking cycle and a subsequent bear market in the USD which lifted Gold prices. After this mov retraced in Feb/Mar we then had the collapses of Signature bank and Credit Suisse, this saw the dynamics of Gold change from following interest rates and USD strength to being a bona fide safe haven and an explosive move up to where we are now, looking to test the all-time highs set back in 2020.

Zooming in on the technical, I believe Gold is still in a strong uptrend and will continue to benefit from safe haven flows while the left-over worries of the banking crisis still remain (is it really over?) but saying that it will find tough going above 2040 USD an ounce, as we can see from the forceful rejection at that price last week, without a further catalyst to push it though, such as another leg to the bank crisis or escalation in geopolitics events. The other Key level is 1805, the last swing low which can be seen as major support. If you believe the Gold bull story the way to play the long side is to avoid getting long above 2020 until a confirmed break of this major resistance level is confirmed and legging into longs everywhere above 1805, a break of that major support level would see the bears certainly in charge.

If you’re a Gold bear, Use the major resistance at 2020-2040 to your advantage, getting short and using that area as an exit if a confirmed break to the upside occurs.

Crude Oil has always been one of the most popular and highly traded markets for CFD traders whether it is WTI or Brent, especially recently as geopolitical and economic forces have seen its price fluctuate from extreme lows to extreme highs. It’s easy to see why, Oil is a bellwether for the health of the global market, oil greases the wheels of global commerce and with CFDs it’s possible to take a position in this exciting market, whether you think the price will head up or down. In this CFD Oil trading Article we will look at the following: How to use CFDs to trade oil Fundamental forces that drive the price of oil Popular technical strategies for trading oil CFDs How to use CFDs to trade oil CFDs or Contracts For Difference allow you to speculate on the price of oil, without owning the underlying asset.

A spot oil CFD tracks the price of the spot market being the cleanest and most efficient way to speculate on the price of oil. They also allow you to take a position in both directions, you would enter a buy (Long) positions if you believed the price will rise, or a sell (Short) position if you believe the price will fall. With Long positions you are looking to buy and sell at a higher price at a later time to profit on the trade.

With a Short position you are selling with the view to buy back at a later time to profit on the trade. At GO Markets we offer our clients the worlds most popular oil trading platform in Metatrader 4 and 5, another advantage to these CFD trading platforms is the ability to automate oil trading strategies. Other advantages to trading oil CFDs with GO Markets: Trade 23 hours a day on WTI oil, 21 hours a day on Brent oil, unlike an ETF or oil company listed on a stock exchange that is only open while that stock exchange is open.

Leverage – the margin required to open the trade will be a fraction of the face value of the position depending on what leverage you are comfortable with. Flexibility in position sizing starting from 0.1 lot ($0.10 USD per point movement in oil) unlike oil futures which have rigid contract sizes. Rolling contract, no expiries such as in options or futures to worry about.

To Enter a position in Metatrader, you would bring up a deal ticket by clicking “New Order” then select your position size, any Stop Loss or Take Profit levels you want the position to automatically close at and hit Buy or Sell. As with any instrument, make sure you are familiar with the lot sizing. 1 standard lot in oil (USOUSD and UKOUSD) is 100 barrels, or $1 USD a point so make sure you set the volume to a level commensurate to your account size and risk appetite. Now, the next question is how you decide on a buy or sell, let’s look at the fundamentals of what drives oil and some technical analysis you can use to answer this question.

Fundamental forces that drive the price of oil Both WTI oil (USOUSD) and Brent Oil (UKOUSD) are highly correlated and will both be referenced as “oil” in the below. While no one reason can be fully attributed to movements in the price of oil, there are an important few fundamental drivers that will influence the price and whose relationship has been time tested. None of these on their own should be used as a sole reason to enter a position, but having the fundamentals on your side will certainly give you an advantage.

The main fundamental drivers in my experience are The perceived health of the global economy OPEC+ production cuts or increases Geopolitical issues The perceived health of the global economy Oil is the driver of commerce, it is needed for the transport and manufacturing of goods and getting people around. If economic conditions are deteriorating, it means less economic activity and the need for less oil sending the price down. A global economy which is seen as “hot” means more economic activity and more demand for oil, seeing it’s price increase.

A clear chart to see this is the price of oil as compared to the US 10-year bond yield over the years. You can see the price of oil and the yield are highly correlated, this is due to yields going up when the economy is “hot” and yields falling when the economy enters a period of contraction, similar price drivers to oil. The black line is WTI oil price, the orange US 10-year yields going back 10 years.

Source: tradingview.com OPEC+ production cuts or increases The Organization of the Petroleum Exporting Countries (OPEC) is a cartel of leading oil-producing countries formed in order to collectively influence the global oil market. OPEC started with a handful of Middle Eastern oil producers in 1960, and has since grown to 24 members in OPEC+. Even thought the USA is currently the worlds top oil producer, OPEC+ countries as a whole still dominate global oil supply and decisions made by the cartel can have a dramatic influence on the price of crude oil.

Market share of oil producing nations: Source: gisreportsonline.com OPEC+ hold regular meetings during the year, normally the expected result is well telegraphed, but sometimes there can be a surprise, such as at their latest meeting on Sunday April 2 nd, 2023, where a surprise production cut was announced, seeing the price of oil gap significantly higher on Mondays open, showing oil traders to always approach these meetings with caution. Geopolitical issues The last three years has seen some very influential geopolitical events, or “black swans” and oil being closely tied to the health of the global economy has seen some very big moves on the back of these events. The Pandemic and its related lock downs and slowing of global commerce saw the price of oil slump to all time lows, followed by the war in Ukraine which saw oil jump to multi year highs on the fear of supply disruptions (Russia is the second biggest oil producer in the world) The chart below illustrates this: Oil traders especially need to be aware of geopolitical risks as the above chart shows.

Technical strategies for trading oil CFDs While having a good understanding of the fundamentals (in my opinion) is important to help you choose the best trades most traders will use a combination of technical analysis and fundamentals with the aim for higher probability outcomes in their trades. Some traders will use technical analysis exclusively without any interest in the fundamental drivers using things such as RSI oscillators, support and resistance areas and trend lines solely to decide on their trade direction. Which option is best is solely up to the trader, their time frames for the trades and risk appetite, all can work, and all can fail neither option can be seen as “better” than the other, it all depends on the individual trader.

Technical analysis is an art in itself and there is a lot to learn on this subject, I encourage anyone interested to research the many weird and wonderful technical analysis strategies that are documented online. But let’s take a look at a popular technical indicators that oil traders use to make their trades. Support and Resistance Support and resistance are one of the most widely used and accurate (when used correctly) technical indicators that can be used by traders.

Support and Resistance areas are points in the market where the price is held from going lower (Support) or going higher (Resistance), these are areas where buyers or sellers are entering the market as they see value in the asset at that price. These levels can last a long time or be temporary and can be used to predict turn arounds in the market, or a break of these levels could indicate a further push in that direction. Oil is also particularly sensitive to psychological levels around “big figures” or rounded number, e.g. 79.00 and 74.00 As can be seen on the chart below.

Hopefully this article has given you an interest to learn more about trading oil with CFDs. Feel free to contact the GO Markets team if you have any questions on trading oil CFDs and opening an account with us.

The U.S. Dollar Index (USDX, DXY, DX, or, informally termed “the Dixie") is a measure of the value of the United States dollar relative to a basket of foreign currencies. It is often used as an indicator of the overall strength or weakness of the U.S. dollar in the foreign exchange market.

Changes in the index value reflect shifts in the relative strength of the U.S. dollar compared to the other currencies in the basket. If the index rises, it suggests that the U.S. dollar is strengthening against the other currencies, and if it falls, it indicates a weakening dollar. The index is calculated using a geometric mean of the exchange rates between the U.S. dollar and a selected specific group of six major currencies.

A common misconception is the component currencies reflect what are commonly thought of as including the currencies that comprise the so called “majors”. However, the currencies that make up this basket are, the Euro (EUR), Japanese yen (JPY), British pound (GBP), Canadian dollar (CAD), Swedish krona (SEK), and Swiss franc (CHF) ONLY. These currencies are then weighted based on their importance in international trade and financial markets to create a quoted overall numerical value, and changes in this value may plotted on a chart as with any other tradable asset class over a set period of time.

Here are the weightings of currencies that make up the USD index currently: Euro (EUR) - Weight: 57.6% Japanese Yen (JPY) - Weight: 13.6% British Pound (GBP) - Weight: 11.9% Canadian Dollar (CAD) - Weight: 9.1% Swedish Krona (SEK) - Weight: 4.2% Swiss Franc (CHF) - Weight: 3.6% Please keep in mind that these weightings are subject to change, albeit infrequently, and it's recommended to refer to reliable financial sources for the most up-to-date information on the U.S. Dollar Index components and their respective weightings. The impact of the USD on other asset classes The U.S.

Dollar Index (USDX) can have a significant impact on various asset classes, as changes in the value of the U.S. dollar relative to other major currencies can influence global financial markets and economic conditions. Here's how the USDX can affect different asset classes: Foreign Exchange (Forex) Market: Currency Pairs: The most direct impact of the USDX is on currency pairs. When the USDX strengthens, the U.S. dollar is gaining relative to other currencies in the basket.

Bear in mind that this strength may neither be uniform against individual currencies nor in the degree of price move in specific USD crosses nor even, on occasion, in the same direction. Commodities: Commodity Prices: A stronger U.S. dollar can put downward pressure on commodity prices. Commodities like gold, oil, and copper are often priced in U.S. dollars globally.

A stronger dollar can make these commodities more expensive for holders of other currencies, hence often there is an inverse relationship to some degree on how these move versus the USD. Gold is often seen as a hedge against a weakening U.S. dollar. When the dollar strengthens, gold can become relatively less attractive to investors seeking safe-haven assets, potentially leading to lower gold prices.

Equity Markets: U.S. Stocks: A stronger dollar can impact multinational companies' earnings negatively. When the dollar appreciates, the overseas profits of U.S. companies become worth less when converted back to dollars, potentially leading to lower corporate earnings.

Emerging Markets: Many emerging market economies borrow in U.S. dollars. If the U.S. dollar strengthens, the debt servicing costs for these economies can rise, leading to economic challenges. As a result, some emerging market stocks can experience increased volatility or even significant economic pressure over time.

Bonds: U.S. Treasuries: The value of U.S. Treasury bonds can be influenced by the USDX.

A stronger dollar can attract foreign investors seeking higher yields, potentially driving up demand for U.S. Treasuries and affecting bond prices. Interest Rates and Central Banks: US Federal Reserve Policy: The strength of the U.S. dollar can influence the decisions of the U.S.

Federal Reserve regarding interest rates. A stronger dollar might give the Fed room to consider tighter monetary policy, while a weaker dollar might lead to more accommodative policies. It's important to note that market dynamics are complex and influenced by a multitude of factors only one of which may be the USD.

Other factors such as economic data, geopolitical events, and central bank actions also have significant impacts on various asset classes, often more so than the USD itself, and indeed may in turn influence the USD. Trading the USD index There are a few ways you can trade the USDX: Futures Contracts: The most direct way to trade the USDX is through futures contracts. These contracts are traded on exchanges like the Intercontinental Exchange (ICE).

They allow you to speculate on the future value of the USDX without actually owning the underlying currencies. The UDX futures trade on the ICE (Intercontinental Exchange, Inc.) for 21 hours a day. Exchange-Traded Funds (ETFs): Some ETFs track the performance of the USDX.

These ETFs attempt to replicate the movements of the index and can be bought and sold on stock exchanges like regular stocks. The most liquid of these is UUP. Options: Contracts allow you to buy or sell options on the USDX at a specified price before or on a certain date.

Contracts for Difference (CFDs): CFDs are derivative instruments that allow you to speculate on price movements without owning the underlying asset. We offer CFDs on the USDX futures contract, which can enable you to go long or short the asset. As part of the extensive product suite offered by GO Markets you have the opportunity to trade both the ETF referenced above, and the USD index (ticker code USDOLLAR). (Keywords: Forex, USD, US dollar, US dollar index, USDX, DXY, Futures contract)

The Purchasing Managers' Index (PMI) is an economic indicator used to measure the health and activity level of a specific sector of an economy, namely the manufacturing or services sectors. PMI data is published on a monthly basis and is of three types: Manufacturing PMI: This is the most well-known type of PMI. It measures the health of the manufacturing sector within an economy.

The index is derived from surveys of purchasing managers at manufacturing companies and covers aspects like production, new orders, employment, supplier deliveries, and inventories. Services PMI: This measures the performance of the services sector, which includes industries like finance, healthcare, retail, education, and more. The services PMI considers factors such as business activity, new orders, employment, and business expectations.

Composite PMI: The composite PMI combines both the manufacturing and services PMI data to provide a broader picture of the overall economic activity in a country. This can be particularly useful for assessing the overall health of the economy. It provides insight into whether a sector is expanding or contracting by examining various business activity components.

PMI is a widely recognised and followed indicator that helps analysts, policymakers, and investors assess the overall economic conditions. The PMI can be viewed as a timely and forward-looking indicator, reflecting overall current economic conditions and provides insights into potential future trends. Here's how the PMI works: Data Collection: Surveys are conducted among purchasing managers from a representative sample of companies in the chosen sector.

These managers are responsible for making procurement decisions, which often provides insight into the current state of economic activity. Components: The PMI survey typically includes questions about various aspects of business activity, such as new orders, production output, employment, supplier deliveries, and inventory levels. Respondents indicate whether these components are expanding, contracting, or staying the same.

Scoring System: Each component of the survey is assigned a score. A score above 50 generally indicates expansion or growth in that component, while a score below 50 indicates contraction. A score of exactly 50 suggests no change.

Calculation of the final PMI: The scores of various components are aggregated to calculate the overall PMI. If the majority of components show expansion, the PMI will be above 50; if the majority show contraction, the PMI will be below 50. Sub-Indices: In addition to the overall PMI, sub-indices might provide insights into specific components like new orders, production, employment, and more.

PMI – The Market Response The market response to PMI (Purchasing Managers' Index) data can be quite significant and can impact various financial asset classes. As with any economic data, the market response to PMI releases will be largely dependent on the consensus estimates of each of the numbers (with are theoretically priced into markets to some degree) against the actual numbers released, and how close this is to estimates. A figure that is wide of the mark compared to expectations is likely to produce a more severe market response.

The response depends on several factors, including the direction of the PMI reading, the sector being measured, the overall economic context, the global significance of the country relevant country (e.g. US PMI may have more global market impact) and underlying market sentiment. Although the exact impact will be dependent on the PMI in the overall economic context, generally speaking the following may be some of the common responses.

General asset classes Equity Markets: A PMI reading above 50 is generally seen as a sign of economic expansion and growth. In the event of a better than expected number, this can lead to increased investor confidence in the market's overall health, potentially driving stock prices higher. A number less than expected and/or below 50 is likely as with this and those assets classes below to have the reverse impact, Currency Markets: In the foreign exchange market, a strong PMI reading can strengthen the currency of the country due to increased confidence in its economic outlook, and in interest sensitive environments may encourage central bank action potentially.

Commodity Markets: A positive PMI may signal increased demand for raw materials and resources, potentially boosting commodity prices, notably base metals and oil. Again, the country for which the PMI is released is relevant with a global impact on commodity prices only with the major manufacturing economies e.g. US and China.

Impact on Interest Rates: Central banks often closely monitor PMI data as part of their decision-making process regarding interest rates. A strong PMI might suggest an economy is heating up, potentially leading to discussions of tightening monetary policy (raising interest rates) to reduce the likelihood of increasing inflation. Conversely, a weak PMI might indicate the need for loosening policy (lowering interest rates) to stimulate growth.

Sector-Specific Responses: Different sectors can have varying sensitivities to PMI data. For example, manufacturing-focused indices and stocks may have a more pronounced response to PMI data related to manufacturing, while service sector indices may react more strongly to service sector PMI data. PMI data is a valuable tool for economists, investors, and policymakers to assess economic trends, make informed decisions, and understand the performance of various sectors within an economy.

As traders, our responsibilities are not only to keep abreast of not only when key data such as the PMI is released but to potentially take this into account with reference to potential risks, in our trading decision-making. (Keywords: PMI, Purchasing Managers Index, market data)

Familiarity with terminology used in financial markets is arguably highly important for those investing in financial products. This understanding can assist with both entry and exit decision-making in the context of an individual's risk profile and objectives. Two terms that are often used to describe the overall position of a central bank are "Hawkish" and "Dovish." For traders and investors, understanding the subtle clues in central banks' communications about their policy stances can be vital, irrespective of their chosen trading or investing approach, as the impact can be far-reaching.

Such communications are often released within statements that go along with interest rate decisions themselves, individual speeches from central bank members, and, of course, interpretations and opinions contributed by financial media commentators. It's important to note that neither a hawkish nor a dovish stance is universally good or bad. The appropriateness of either approach will depend on specific economic conditions and is always to topic of much debate among the financial community as well as within central banks themselves.

Other key factors to consider are not only the stance itself but also whether there are changes in the degree to which this is the case, and of course, how well or otherwise this matches current market expectations. Irrespective of the detail, the bottom line remains that because of the significant influence of the central bank stance, both in the short and long term, being attuned to these policy shifts and adapting trading strategies accordingly can be a powerful tool for traders. The purpose of this article is to describe these terms in a little more detail, their implications for financial markets in the context of the economic changes that may result from either.

Hawkish Policy The hawkish stance emphasises the importance of keeping inflation in check and curbing economic overheating, even if it means sacrificing some economic growth in the process. In practical terms, this is often delivered through increasing interest rates, and supporters of a hawkish approach believe that maintaining stable prices creates a more predictable economic environment, considered essential for making informed investment and financial decisions. Dovish policy A dovish policy stance is typically adopted by a central bank to stimulate economic growth.

It is characterised by a more accommodative monetary policy, and includes lowering interest rates and may even involve putting in other measures to increase money supply in the economy. The main objective is to encourage borrowing and investment, increase consumer spending, and create a supportive environment for employment growth. Implications for Financial Markets: Bonds: In an increasingly hawkish status, higher interest rates generally lead to lower bond prices and higher yields.

As a result, investors who hold bonds with fixed interest rates might see a decrease in the market value of those bonds. Stocks: Should there be an increasingly aggressive monetary policy, the cost of borrowing increases with higher interest rates, potentially affecting companies' profit margins, particularly for those companies with higher debt levels. Additionally, the negative impact of a decrease in consumer spending will impact company revenue, particularly in growth and consumer discretionary stocks.

These factors will exert downward pressure on stocks as the impact on earnings of both of these factors bites into previously expected EPS. The impact on the housing market will commonly influence the pricing of related stocks, e.g., homebuilders. Whereas with a dovish viewpoint, equity markets are likely to see gains with growth; for example, technology stocks and consumer discretionary stocks may benefit.

Companies might increase capital investment in research and development or even be more likely to consider acquisitions, taking advantage of the lower cost of borrowing. Currencies: A hawkish policy usually leads to currency appreciation, making the country's currency more attractive to foreign investors. The reverse is, of course, true also, with an increasing dovish stance resulting in currency depreciation.

As currencies are traded in pairs, the implications will be somewhat dependent on more than one central bank policy. One final point worth emphasising is that the impact of central bank policy and the hawkish or dovish viewpoint, although mostly impacting on the national economy, is likely to have far-reaching effects beyond the local economy if it is from one of the major economic powers e.g. US.

The impact will spread throughout the global financial markets, including, in this case, commodity prices. Summary Both hawkish and dovish stances have significant impacts on financial markets and the broader economy. The effectiveness of either approach depends on the prevailing economic conditions and the goals of the respective central bank.

For traders and investors, understanding the subtle clues in central banks' communications about their policy stances can be vital. Hawkish signals might lead to short-term rallies in the currency but declines in bond and equity markets, while dovish signals might have the opposite effect. Being aware of these policy shifts, knowing key relevant dates of related events, sand adapting trading strategies accordingly can be a powerful tool for traders and investors alike.

Introduction The VIX Index, or Volatility Index, often referred to as the "fear gauge," measures expected future volatility in the U.S. stock market. Although it's worth noting that there are VIX variations for gold, oil, and global indices, when people discuss the VIX, they usually refer to the instrument based on the implied (forward looking rather than historical) volatility of S&P 500 index options. Broadly speaking, the VIX is widely used as an indicator of market sentiment and can signal increasing or decreasing risk depending on its direction.

This article aims to clarify how the VIX Index can inform traders about market conditions and discusses ways you can trade this instrument. What Does the VIX Index Tell Us? Measure of Volatility: The VIX calculates the market's expectations for volatility over the next 30 days.

Higher VIX values indicate higher expected volatility, while lower values may be suggestive more potential stability. Market Sentiment Indicator: Many investors view the VIX as a barometer of investor sentiment, particularly those of fear, or complacency.A rising VIX can signal increasing fear or uncertainty in the market often associated with adverse economic conditions, data or significant global events, while a falling VIX may indicate complacency or confidence that good or better times after a market shock may be likely.Such movements may be short or longer term in nature dependent of course on the underlying cause of such potential sentiment changes and the perceived longevity of related events and their implications. Non-Directional: Although theoretically the VIX doesn't necessarily correlate with market direction, its true essence is one of an indication about the expected magnitude of price movements, whether up or down.Times of uncertainty, actual or potential, can influence the likelihood of prices moving away from their current positions, thereby increasing volatility.However, it's worth emphasizing that such uncertainty is usually negative in connotation rather than positive.

This is why we often see an inverse relationship between the VIX and the S&P 500. The Inverse Relationship with the S&P500? The S&P 500 Index and the VIX Index are often described as inversely correlated.

However, it's crucial to understand the nuances and exceptions to this relationship. Generally speaking, during periods of high uncertainty or market stress, investors may use options to hedge against potential losses in their stock portfolios, driving up implied volatility, and thus the VIX. Conversely, when investors are confident, stock prices tend to rise and volatility decreases, invariably causing the VIX to drop.

Potential Exceptions and price considerations Short-term Deviations: There can be short-term periods where both the VIX and the S&P 500 move in the same direction. For instance, in a strongly trending bullish market, traders might buy calls (upside options) to leverage their gains, driving up implied volatility and the VIX along with the market. Degree of Movement: The inverse relationship doesn't necessarily imply a 1-to-1 movement (or even a defined multiple of) irrespective of the direction.

As an example, the S&P 500 might drop by 1%, but the VIX could surge by as much as 10% or more.Technical analysis may have a part to play in the degree of movement in both instruments as well as any level of continued uncertainty and implications of this going forward Volatility "Clustering": High volatility periods often cluster, meaning that a single significant drop in the S&P 500 might result in a prolonged period of high VIX values and an apparent “slowness” to drop again, even if the market actually starts recovering or appears increasingly likely it may do so. The reason for this is unclear, but logically after a significant market shock there may be prolonged period of market sensitivity before investors are prepared to believe that any ensuing recovery is sustainable. Practical Applications for Traders and Investors It is worthwhile briefly outlining the motivations and approaches as to why someone may consider trading outside that of a pure directional play.

Hedging: When the S&P 500 is doing well but the VIX starts to rise, it might be a warning sign of increasing uncertainty. Investors may choose to hedge their portfolios by buying VIX options or futures/CFDs. Market Timing: Some traders use the VIX for market timing.

For instance, an extremely high VIX value might indicate a market bottom, while a very low VIX value could suggest a market top. Pairs Trading: Sophisticated traders sometimes engage in pairs trading, going long on one index while shorting the other, aiming to profit from the reversion to the mean of the correlation between the two. How Can You Trade the VIX?

VIX Futures and Options: These derivatives allow traders to take positions based on their expectations for future changes in volatility. CFDs (contract for difference) based on the VIX futures contracts are also available om many trading platforms as an alternative. Exchange-Traded Products (ETPs): ETPs like VIX ETFs and ETNs provide a more accessible way for individual investors to gain exposure to volatility.

Again these may be available of some MT5 platforms such as the one offer through GO Marekts, who provide access to US share CFDs including ETFs. Pairs Trading with S&P 500: Traders may also consider strategies that involve trading the VIX in conjunction with the S&P 500.Tihs should be consider an approach for experienced traders only with clear strategies to action both entry and exit of such positions. Utilize Technical Analysis: Since the VIX is a tradable instrument (whatever the variation in instrument), technical indicators may still be relevant particularly key levels such as support and resistance levels or pivots.

In summary The VIX index serves as an important gauge of market volatility and sentiment and can be useful as a daily "check in" insight of current market state. Trading the VIX presents opportunities but also unique challenges and risks as well as offering some guidance on market state. In terms of trading opportunities it may be suitable for experienced traders with a solid understanding of the underlying mechanisms.

There are a few different ways to actually trade the VIX, commonly for those using MetaTrader platforms such as you would with GO Markets, a CFD is available that is based on the VIX futures contract.